Trouble Brewing for the Colombia ETF?

ETF Database submits: Thanks to ongoing turmoil in developed markets, many investors have put their dollars to work in emerging markets around the globe in an effort to generate material growth in their portfolios. Many ETFs have stepped up in recent years to give investors a variety of locales in which to invest, including funds targeting the Vietnamese, Peruvian, and Polish equity markets–just to name a few. While some have not been kind to investors, others have managed to produce incredible gains in a very short period of time, rewarding some investors for seeking out exposure to emerging and frontier economies that aren’t on the radar screens of most. One of the best performers in this category of country-specific emerging markets ETFs has been the Global X/InterBolsa FTSE Colombia ETF (GXG), which has surged by close to 50% on the year–including a 22% gain over the past three months. This amazing run has been fueled by stellar performances from some of the fund’s top holdings, including a 62% year to date gain from top holding Ecopetrol (EC) (20.3%) and a 40.9% gain from BanColombia (CIB) (19.9%). However, some are beginning to worry that the country could become the victim of its own success, as a rising Colombian peso threatens to choke off the impressive equity market rally.Complete Story »

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ETF Database submits: Over the past few weeks, many emerging and developed markets have trended sideways or even fallen as continued concerns over global growth have plagued stocks around the world. Almost no geographic region has been immune to this doom and gloom, with markets falling everywhere from Britain to Brazil and every country in between.

Michael Johnston submits:Global X, one of the fastest-growing ETF issuers, continues to build out the emerging markets portion of its lineup. The company announced today the launch of the Global X FTSE Andean 40 ETF (AND), linked to an index that tracks the performance of the 40 largest companies in Chile, Colombia and Peru.

ETF Database submits: As growth continues to be hard to come by in the developed world, many investors have trended towards emerging markets as a way to boost sagging portfolios. While many have turned to the usual suspects of the BRIC bloc, a few wise investors have gone beyond the beaten path to smaller markets such as Malaysia, Peru, and Chile in order to provide outsized returns.

ETF Database submits: In the wake of the latest global recession, it is the emerging markets of the world that have emerged as the clear drivers of global growth. As a surging consumer segment propels China and India forward, resource-rich Latin America is well positioned to benefit from increased global demand for raw materials–particularly as the U.S. dollar tumbles against most of its primary rivals.

Michael Johnston submits:Van Eck, the issuer behind several country-specific emerging and frontier market ETFs, announced today the latest addition to its product lineup. The Market Vectors Colombia ETF (COLX) will seek to replicate the Market Vectors Colombia Index, a benchmark that consists of companies either domiciled and primarily listed on an exchange in Colombia or generating at least 50% of their revenues in Colombia.

Michael Johnston submits:Frustrated with the diminishing prospects for growth in the developed world, investors have flocked en masse over the last two years towards red hot emerging markets that now account for the vast majority of global GDP growth. As interest in emerging markets equities has jumped, so too have the options for U.S. investors looking to gain exposure to this asset class.

Dan Pritch submits: While much talk of hot Latin American economies has focused around the Frontier Markets up 22% on the year, Colombia’s ETF (GXG) is up even more on the year, just breaching a 50% gain for the year.

Bill Luby submits: While U.S. investors can be forgiven for thinking that stocks have been stuck in a fairly narrow trading range for the last 3-1/2 months, those who are scanning the globe for investment ideas are likely to have seen an entirely different investment climate.